Value Creation Is The Bedrock Of Our Business ANNUAL INTEGRATED REPORT 2022 85 Sustainability Review COLLECTIVE BARGAINING AGREEMENT We recognise and respect our employees’ right to join trade unions and any association of their choice as well as their right to collective bargaining. As of 2022, approximately 41% of our employees are covered under Collective Agreements (CAs). Our non-executive staff members are provided with the opportunity to join workers’ unions, enabling them to express their opinions and concerns. We have signed 16 CAs with workers’ unions that cover the period from 2022 to 2024, 14 of which are internal union agreements and two external agreements with the National Union of Petroleum and Chemical Industry Workers (NUPCIW) and the National Union of Commercial Workers (NUCW). Our CAs cover our workers in the plantations, mills, factories, refineries, bulking and logistics facilities, which encompass almost our entire range of operations. Our in-house and national unions represent employees in various segments. We have meetings with each union twice a year, and more frequently when urgent issues arise. The welfare and rights of employees are addressed through routine engagements with union representatives that help to speed up the timely resolution of issues raised. Additionally, we have in place Joint Consultative Committees in our estates for the benefit of all workers, including migrant workers, to address issues and concerns affecting them. DIVERSITY, EQUITY AND INCLUSION We recognise that having a diverse workforce helps the organisation to become more dynamic and resilient. It introduces fresh perspectives and experiences, and enhances motivation and competition among employees to foster greater innovation and work productivity. We have a zero-tolerance stance against all forms of discrimination and diversity is the considerations made into account during the processes of hiring and promotion. As a progressive employer, we embrace the principle of non-discrimination and provide equal opportunities for every employee to grow professionally. Regardless of their gender, age, nationality, religion, political opinion, social group, ethnic origin or any other form of discrimination. All employees receive fair remuneration that is commensurate with their seniority, job and experience. We comply with the applicable country’s minimum wage order as part of our commitment to offering fair and dignified employment. The United States (US) Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on palm oil and palm oil products produced by FGV, its subsidiaries and joint ventures. To address this, FGV has taken steps to have the WRO modified by the US CBP. As of 31 December 2022, FGV has implemented the following measures: • Appointed Crowell and Moring, a US-based legal counsel • Appointed ELEVATE to conduct an independent assessment of FGV’s operations against the 11 ILO Indicators of Forced Labour • Developed a Remediation Plan in consultation with ELEVATE and Crowell and Moring • Established a Steering Committee comprising members of FGV’s Top Management and chaired by the Group CEO to oversee efforts to modify the WRO • Established a WRO Remediation Task Force to oversee and monitor the implementation of the WRO Remediation Plan • Implemented continuous communication with the US CBP • Engaged with stakeholders including with the Minister of Plantation Industries, the Ministry of Human Resources, the Ministry of Foreign Affairs, the US Embassy in Malaysia, the Malaysian Embassy in Washington DC, the Malaysian Palm Oil Association (MPOA) and the Malaysian Palm Oil Board (MPOB). ELEVATE has completed its on-site assessment, which comprised unannounced visits and audits of 25 estates and three mills across FGV’s operations in Malaysia. Based on the outcomes of ELEVATE’s assessment, FGV is currently implementing a remediation plan that covers the following focus areas: WITHHOLD RELEASE ORDER ISSUED BY THE UNITED STATES CUSTOMS AND BORDER PROTECTION Management of workers Reimbursement of recruitment fees Salary and wages Overtime and hours of work Human resource matters Workers’ welfare Health, safety and environment Facilities Contractor management Grievance mechanism Management systems Workers undergoing regularisation
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